1. Cash flow management is key.
You need to know where every single dollar is coming from and where every single dollar is going. If you don’t stay on top of your cash flow, you are going to put your business in a very dangerous position. Establish a budget and stick to it.
2. Track and monitor all spending.
With a new startup, there are going to be expenses coming at you from every direction. so use accounting software to remain organized for a very budget-friendly. Not only will this help with cash flow management, but it also makes it much easier when tax time rolls around every year. As you grow and the accounting becomes more complex, you will need to consider hiring a professional.
3. Limit your fixed expenses in the beginning.
In the beginning stages of a startup, keeping your expenses low is the key to longevity. Operate thin so you can allocate the majority of your capital to growth, which will enable you to one day implement any perk you want. Too many startups focus on the wrong things — like fancy offices and over-the- top amenities — and forget that generating revenue should be their top priority.
4. Remain optimistic but prepare for the worst.
Keep reserves — both personal and business– in an emergency savings account. As an entrepreneur, you are responsible for your retirement, so when you start making money consider things like a individual retirement account and some investments, even small ones. Anything is better than nothing — consider micro-investing opportunities or allocating funds on a monthly basis to an online platform.
5. Every minute of your time has monetary value.
Time is money. Nothing has more monetary value than your time. You only get so much of it every day, so take that into consideration when you are planning your schedule and day-to- day duties. Every second you spend doing something unrelated to your business is time (and money) wasted.
6. Focus on customer acquisition.
Without customers, you have no business. The sooner you figure out how to acquire customers and scale, the greater the chances are of your company making it. It’s impossible to test every possible acquisition channel at first, both in terms of time required and cost, so focus on the most lucrative opportunities. Once you successfully scale those, you’ll have the financial capability to explore other channels.
7. Make sure you pay yourself.
Your hard work and dedication to your business alone isn’t going to put food on your table — you need to pay yourself. While you don’t need to compensate yourself with a big fat salary in the beginning, make sure you pay yourself enough to live. Give yourself enough to live comfortably and focus on building your business. When you eliminate personal financial stress, it allows you to stay ultra-focused on your business.
8. Establish financial goals.
Monthly, weekly or even daily revenue goals allow you to stay on track and make the adjustments necessary for constant growth.